Are marriages between say Southern Baptists valid in the eyes of God?
Yes.
If they had children and they converted to the Catholic Faith would the children be legitimate?
Yes, and the children would still be legitimate even if the parents did not convert.
Would they have to be remarried in the Catholic Church?
No. Marriage has always existed, Our Lord simply raised it to a sacrament that confers grace.
Marriage has been explained to me a bit different and maybe I am confused or didn't understand this clearly.
I have been recently told that marriages between baptized Protestants are valid yes but not sacramental, therefore they have no grace.
Only marriages where the Sacrament is conferred have grace.
Perhaps I misunderstood.
If otherwise, then why go through all the hoopla to get married in the Church anyway?